FBR Collects PKR 11.7 Trillion in FY25, Misses Revenue Target

Islamabad – The Federal Board of Revenue (FBR) has provisionally collected PKR 11,722 billion in tax revenue for the fiscal year 2024–25, falling short of its downward-revised target of PKR 11,900 billion by PKR 178 billion.

Initially, the government had set a tax collection goal of PKR 12,913 billion. This was later revised to PKR 12,334 billion and eventually adjusted to PKR 11,900 billion due to sluggish economic activity and persistent revenue collection challenges.

Despite introducing new tax measures estimated at PKR 1.8 trillion for FY25, the FBR struggled to meet even the revised target. By the end of May 2025, the cumulative shortfall had reached PKR 1,027 billion. June presented a particularly difficult hurdle, with a target of PKR 1,667 billion for the month. However, provisional figures as of 10 PM on June 30 indicated collections stood at only PKR 11,722 billion.

The shortfall highlights ongoing difficulties in broadening the tax base, enforcing compliance, and achieving fiscal goals, despite multiple increases in indirect taxes and adjustments in withholding regimes.

Experts caution that the missed target could complicate fiscal planning and strain Pakistan’s negotiations with the International Monetary Fund (IMF), which has closely tied its support to improvements in tax collection performance.